Indonesian Rupiah
Ensuring economic success is one of the main responsibilities of a man in power, such as President Suharto. Citizens depend on their leaders to represent their best interests and to provide a certain standard of living. In the case of Indonesia, the political leader sought personal gain, in both power and finance, and provided his people with the minimum to keep them content and quiet. Organizations, such as the IMF, were created to ensure that leaders such as Suharto do not gain absolute power. The IMF sets up certain measures of structural reform in exchange for financial assistance. In this particular case, Suharto took measures into his own hands, ignoring the suggestions made by the IMF resulting in a severe economic crisis. The IMF then responded by taking action and delaying disbursements to Indonesia and its people, in hopes that Suharto would agree to restructure its monetary policies. . . .
Food and fuel are every day necessities that effect every citizen. In addition, Suharto could have also restructured the draft budget so that it contained more realistic and feasible projections. I would wait until the economy returns to a normal and stable position and then implement the currency board to maintain economic success. 1) Suharto could have simply kept his promise to restructure the banking system, maintain a tight monetary policy, raise sales taxes, cut food, fuel, and electricity subsidies, end government funding of several huge, money-losing investments, and disband domestic monopolies, cartels, and special entitlements. For example, government funding is essential for economic growth and stability. 2) A most obvious benefit of an Indonesian debt moratorium is that it would grant permission to debtors for suspension of payment on their loans for a given period of time. This way, more areas of the economy receive assistance and the likelihood of a quick economic recovery is probably higher than that of selling currency in foreign markets. If the IMF's measures were tough, then the Indonesian economy must have really needed to be rescued. This in turn would also free up some cash to increase the money supply. Although these tasks may be easy to spot, they are not, however, easy to implement. 6) The IMF's prescription made complete sense, in my opinion. , IMF, and EU economic officials argued that a currency board could be disastrous for the Indonesian economy. In turn, they may find themselves temporarily out of work, thus raising the unemployment rate. In addition, it was believed that Suharto was only interested in a currency board for personal gain.
Common topics in this essay:
President Suharto, Indonesia Suharto, IMF Suharto, IMF EU, Monetary Fund, Organizations IMF, Instead Suharto, Suharto Citizens, currency board, Summary Ensuring, IMF Indonesia, standard living, personal gain, president suharto, debt moratorium, structural reform, foreign direct investment, indonesia's foreign direct, link rupiah, rupiah dollar, implement currency, board link, currency board link, establish currency board, implement currency board, |
Acceptance Essays
